FinCEN Ends Beneficial Owner Reporting Requirements

The Financial Crimes Enforcement Network’s (“FinCEN”) rule requiring the reporting of certain residential real estate transfers went into effect on March 1, 2026.  Shortly thereafter, that rule was suspended by a federal court order, an appeal of which is currently pending.  Recently, FinCEN announced that it has permanently ended the reporting requirements for the covered transfers and will delete any information that was reported during the short period the rule was in effect for any transfer that is now exempt.

There are several real estate transfers that will still be covered by FinCEN’s reporting requirements, most notably foreign entities that are reporting companies.  Financial institutions should consult with counsel to determine which reporting requirements will apply regardless of the ultimate outcome of the appeal.

MDK encourages continued work with knowledgeable counsel for continued compliance.  Please continue to read the MDK News Break for additional updates and information.  Should you have any questions, please do not hesitate to contact us.